What Has Trump’s “Liberation Day” on April 2 Brought Us?

An Analysis of New Tariff Policies, Trump's "Liberation Day", and Their Global Impact; The China Response and What Will The Rest of The World Do?!

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Introduction

After much anticipation, the long-awaited "Liberation Day", promised to free America from its reliance on foreign goods, has finally come and, as expected, has not yielded any benefits, particularly for America.

President Donald Trump declared that on "Liberation Day", he would reinstate tariffs aimed at restoring the soul of the United States and launching a golden age in which American industry would experience a robust revival. He stressed that companies producing within the USA would be spared from these tariffs.

Tariffs for Everyone

In practice, the decision was made to implement a flat 10% tariff on goods from around the world and a 25% tariff on vehicles manufactured outside the USA.

Additionally, a reciprocal tariff for countries with the largest trade imbalances is set to take effect at midnight on April 9. Some of the countries expected to bear the brunt of these measures include:

• China: 34%

• European Union: 20%

• India: 26%

• Japan: 24%

• Serbia: 37%

• Bosnia and Herzegovina: 34%

This move by the Trump administration officially sparked the long-anticipated trade war, as nearly every nation has vowed to retaliate with their own tariffs against the USA.

The only country so far showing some restraint is Great Britain, which insists its response will be guided solely by national interests.

Among the first to react was China, which swiftly imposed a 34% tariff on all imports from the USA, announced legal actions, and introduced additional restrictions on American companies.

In response, Trump commented, “They made a mistake and panicked,” a remark that seems more reflective of his personal style than of China’s measured reply.

Global Consequences for the World and the USA

Trump’s vision of ushering in a golden age of wealth for America appears increasingly unlikely.

The swift and unexpected reaction from China has triggered panic on American stock markets, which have seen a sharp decline. The VIX—often dubbed the “fear index” of Wall Street—jumped 40%, underscoring the anxiety gripping investors.

Not only have US markets faltered, but European, Asian, and Australian exchanges have also experienced significant drops for the second consecutive day as fears of a global recession mount.

According to JP Morgan, the risk of a global recession has now climbed to 60% by the end of the year, up from their previous estimate of 40% announced on March 12.

Bruce Kasman, JP Morgan’s chief economist, told Bloomberg, “Destabilizing American policies have been recognized for months as the greatest risk to global prospects. The latest developments only deepen our concerns, as US trade policy is moving in a direction far less favorable for the business sector than we anticipated.”

Meanwhile, on social media platforms like Truth Social, Trump boasts about new employment figures and job creation. “It’s already working. Hang in there; we cannot lose!” he declared. Yet the numbers tell a different story—the unemployment rate has edged up from 4.1% to 4.2%. Many analysts caution that even strong employment data might not be enough to dispel fears of recession in these turbulent times.

Conclusion

As the data presented here suggests, Trump’s tariff measures may ultimately backfire, hitting Americans the hardest.

US stock markets, along with those worldwide, are plunging to five-year lows; the automotive industry is cutting jobs, investors are gripped by uncertainty, and analysts are warning of a looming global recession.

Meanwhile, Trump and his team continue to claim that better days are ahead for America. However, if a global recession does take hold, it is unlikely that anyone will emerge unscathed, least of all the average citizen.

In the end, the blame for any economic downturn will rest on tariffs and the misguided policies of the Trump administration.

These are challenging and unpredictable times. While our leaders continue to bicker over minor issues, the real work of steering our nations through these troubled waters remains undone. Let’s hope that the worst is avoided, for in periods of severe economic downturn and scarcity, the risk of conflict increases—a scenario no one can afford.

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